My presentation is a history lesson; it reminds us how much blood sweat and tears it has always taken to get hold of gold and silver wealth.Â What a contrast with 2020 when creating new money at the stroke of a pen is the favourite economic policy for Central Banks.
I take a 2,000 year sweep of history and examine the sources of bullion for Britainâ€™s coinsÂ There are stories about the Royal African Company (and the slave trade), the East India Company and the South Sea Company which traded throughout the world, bringing back bullion which laid the foundations for the modern economy.Â Britainâ€™s military power was another key factor in wealth gathering.Â The seemingly interminable wars with Spain and its allies meant that few treasure ships were entirely safe from attack by the Royal Navy or British privateers. Some of this bullion was coined at the Royal Mint and bears the corporate logoâ€™s of the great corporations or the names of the battles.
19th century gold rushes in Australia, Canada and South Africa led to the minting of hundreds of millions of sovereigns â€“ underpinning the British Empireâ€™s finances and cementing Londonâ€™s position as a global financial centre. Gold was power.
Central Banks are â€œmagickingâ€ so much new money from â€œthin airâ€ that investors feel dizzy.Â Can gold and silver protect us from having to pay our share of the bill for this conjuring trick?Â My presentation helps to provide the answers from a historical point of view.
Understanding the biggest driver of potentially higher gold prices
Why is gold (still) not widely owned in pension and endowment funds?
Itâ€™s a gold bull marketâ€”why is silver underperforming?
Much of the current discussion around ESG may seem nebulous; commitment to distant goals, proliferating reporting standards or opaque ESG indices. However, a new, data-driven approach, linked to mine economics, is emerging.
ESG issues will become increasingly material with regard to investment decisions, for miners and investors. Over time they will become major value drivers for the sector, influencing metal prices, production costs and availability of finance.
Innovative investors will be able to gain an edge, if they take the time to understand the future impact of ESG on the sector.